Lifestyle Communities (LIC) investor relations material

Executive summary

• Statutory net profit after tax for 1HFY26 was $15.8m, down from $22.7m in 1HFY25, mainly due to lower new home settlements and DMF revenue following the VCAT decision, but rebounding from a significant loss in 2HFY25.

• Net new home sales rose 168% year-over-year to 110, with settlements at 128, down from 137 in 1HFY25.

• Operating cash flows were $41.2m, supported by inventory reduction and land sales, compared to negative $12.9m in the prior year.

• Net debt reduced to $323.6m from $460.5m at June 2025, reflecting deleveraging efforts.

• Customer satisfaction (CSAT) improved to 78.0 in September 2025, up from 75.7 in March 2024.

Financial highlights

• Operating profit after tax was $16.1m, down from $22.7m in 1HFY25.

• Gross rental income grew 11.9% year-over-year to $25.3m, with total annuity revenue at $26.7m.

• Home settlement margin declined to 11.0% from 14.9% in 1HFY25 due to targeted price adjustments.

• Net assets increased to $648.1m at December 2025.

• Positive operating cash flow of $41.2m, up from negative $12.9m in the prior year, driven by reduced development expenditure and land sales.

Outlook and guidance

• Further deleveraging and positive full-year operating cash flow expected as inventory reduction continues.

• No new project launches planned for the year, with focus on selling through existing inventory and being market-led in development and sales.

• Lower prior period sales rates expected to temper future settlements due to lag effect.

• Demand fundamentals remain strong due to an aging population and housing affordability pressures.